Why German Sports Kit Company, Puma Terminated Over N1Billion Contract With Nigeria After Disgraceful Olympic Outing

German sportswear manufacturing firm Puma has introduced the dissolution of their kits contract with the Athletics Federation of Nigeria (AFN).

The German firm disclosed the termination of the four-year deal in a letter dated August 4 and was signed by PUMA’s Director Manuel Edlheimb obtainable to SaharaReporters on Thursday.

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“We are referring to the licensing and sponsoring agreement signed between our company and your federation.

“As a direct consequence of the recent developments, particularly at the Tokyo Olympic Games 2020 and pursuant to clauses 9.2 and 7.3 of the Agreement, we hereby terminate the Agreement with immediate effect.

“PUMA especially declares to be discharged from any or all obligations towards all stakeholders involved and reserves all rights against these entities and individuals.

“The official notification is dispatched to all stakeholders listed on page two,” Edlheimb mentioned within the assertion.

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The AFN below the management of Ibrahim Gusau had agreed the $2.76 million (about N1.2 billion) cope with Puma on July 24, 2019, in Doha, Qatar however the contentious deal is likely one of the main causes of the disaster rocking the company.

It had cut up the athletics physique into two factions, with each Gusau and his vp Sunday Adeleye accused of sidelining different members of the board throughout the signing of the deal.

The Sunday Dare-led sports activities ministry insisted that Team Nigeria athletes weren’t going to make use of Puma kits on the ongoing Olympic Games regardless of the Gusau group sending them to Tokyo.

“It is common knowledge that the former AFN president, Ibrahim Shehu Gusau, with his co-travellers, is desperate to extricate himself from a contract that he controversially signed the AFN into, which has now placed him in a position of trying to blackmail Team Nigeria into wearing the kits.

“Ibrahim Gusau has conveniently neglected to tell Nigerians that he and Sunday Adeleye signed a non-disclosure agreement with Puma, with the details unknown to the ministry and board members of the AFN.

“The minister and the ministry will not commit the Nigerian government and Nigerian athletes to a deal which the ministry has not sighted the contractual documents that ties Nigerian athletes to a five-year contract with Puma,” the sports activities minister, Dare mentioned.

Before Team Nigeria’s departure, the Vice President, Professor Yemi Osinbajo had unveiled Afa Sports because the official kits provider for Team Nigeria. 

But explaining the reason for the disaster, Adeleye, a former Technical Director of the Athletics Federation of Nigeria, mentioned the AFN already had a contract with Puma.  

In an interview with Arise TV, Adeleye mentioned, “There is another disaster waiting for Nigeria. We have a contract with Puma, which we signed in 2019 and we got kits worth $2.7 million. Puma were supposed to kit Nigerian athletes at the Tokyo Olympics but the minister is saying the athletes should not wear them because he is bringing another company to kit them.

“Now, Puma is already threatening because part of the agreement was that we would wear the kits at the Olympics. Now that we are not wearing these kits at the Olympics, Nigeria risks being charged to court for breach of contract.”

Adeleye mentioned the Puma kits had been nonetheless made accessible for the athletes however the sports activities minister, Dare mentioned rejected supply. 

Adeleye added, “We know there is this leadership crisis, but we agreed that even though we are not going to the Olympics the team should have the kits which have since been supplied.

“They are our athletes going to Japan to compete for our nation. Mark it, we didn’t pay a dime, But the minister is saying as a result of he has an issue with Ibrahim Gusau and Sunday Adeleye you’ll not have the kits. $2.7 million greenback price of kits totally free for five years. In this nation the place we’re borrowing to do virtually all the pieces, you might be saying you don’t care if Puma will take us to courtroom? I believe one thing is flawed someplace.”

According to Adeleye, the Puma kits had been despatched to the Nigerian Embassy in Tokyo, Japan however the minister insisted that Team Nigeria would don’t have anything to do with the kits. 

This, in accordance with him, might be expensive if Puma presses for compensation. 

According to the Gusau-led AFN, gold medallists on the Olympic Games had been billed to get $15,000, silver medallists, $5,000, and bronze medallists $3, 000 from the terminated Puma deal.

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Why German Sports Kit Company, Puma Terminated Over N1Billion Contract With Nigeria After Disgraceful Olympic Outing

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